Daniel Pike
QA
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I’m buying my first property and my
parents are funding my deposit. How
does this affect the legal process?
facilitate this. Some mortgage lenders
require 7 working days notice to process
the solicitor’s request for mortgage funds.
It is increasingly common for first time
buyers to receive financial help from
their parents or other family members.
Whether this takes the form of a gift or
a loan this is likely to have implications
for the buyer’s mortgage application and
should be discussed at an early stage
with the mortgage broker and the buyer’s
solicitor.
Why are solicitor’s costs higher for
leasehold transactions?
If the person providing financial assistance
wants to protect their investment then they
may require independent legal advice on
the various options open to them. If, as
is likely, additional legal documentation is
required then this could potentially delay
the transaction so the sooner this issue is
raised the buyer’s solicitor the better.
Where an unmarried couple are contributing
unequal sums towards the deposit or
receiving financial help from a third party
it may be advisable for their solicitor to
draw up a declaration of trust / cohabitation
agreement. These are legal documents
setting out how the equity in the property /
the couple’s belongings should be shared
/ divided in the event of a relationship
breakdown. They should also give serious
consideration to making new Wills.
I’ve heard you can exchange contracts
and complete on the same day. Is this
possibl S